Sunday, July 17, 2011

Lorenz Curve, or Accumulative Line Graph


http://ingrimayne.com/econ/AllocatingRationing/MeasuringIncomeDist.html
A Lorenz curve, or Accumulative Line Graph, shows the proportion of the distribution assumed by the bottom "y"% of households. It often compares the % of income (plotted on the y axis) to the % of households (x axis), because it is primarily used in economics. It can also be used to look at assets and general wealth. The Lorenz curve was created in 1905 by Max O. Lorenz, who simply wanted to show the inequalities in the wealth distribution.
This Lorenz curve illustrates the inequalities between percent of income and percent of households.

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